The cost of not protecting your merchandise is always greater than the cost of protecting it (See ROI Calculator Here). When looking at the price of shoplifting prevention and alarm systems, you need to keep all these things in mind. Average Shoplifting Alarm System pricing is included below to help you think about your needs.
The sad fact is, your store has product loss. You may be losing through shoplifting, through employee theft or even just in missed opportunities when buyers walk out of your store empty handed.
These losses might seem small to you. You cannot win them all. But few managers understand the true loss when you factor in things like profit margin.
The average retailer in the US has about a 2% profit margin. This is after tax, expenses, labor….. so if the retailer is losing $1500 per month then you take the $1500 divided by the profit margin. In this case 0.02 that equals $75,000.00 in sales the retailer will have to sell to BREAK even, no profit on the loss.
The average shoplifting prevention system and labels/hard tags costs $2,600. This is a onetime investment that will pay for itself very quickly.
Even if the retailer spends another $2000/yr on disposable labels they would be spending the first year $4,600 for a return of an estimated $900,000 in sales. They can insert whatever their profit margin and losses are to get their own numbers, but this impact will be big.
Combine this shoplifting prevention system with better up selling skills and more attentive service, and your store could completely transform itself in a year to one of ultra-high profitability and superior performance.
The risk of not addressing these issues is dire. Low profits, or no profits, means any month could result in a negative downturn and closure of the store.
Bill Bregar of Loss Prevention Systems has worked in security and retail loss for many years and has seen simple changes make big impacts on a store’s profits time and time again. His three pronged retail profitability approach is simple.
1. Maximize highly visibly shoplifting prevention technologies to reduce the shoplifting loss and make it clear to would be shoplifters that your store is not an easy target.
2. Better customer engagement by staff will result in more revenue per customer as well as reduce loss as it makes shoplifters significantly less likely to try to shoplift something when they have been engaged by store staff.
3. Improve staff practices by bench-marking staff performance using a people counting system as well as doing a better job with employee background checks, training, and if necessary conducting investigations when there is a possibility of employee theft. The quicker that is stopped the lower the impact on a store.
Loss Prevention Systems is committed to moving stores from cash poor to cash cows for owners and managers by reducing all the ways your store is bleeding profits and being taken advantage of. No one likes to be a source of unscrupulous income for criminals.
Give Bill Bregar a call at 1-770-426-0547 and you can discuss with him how this three pronged profit enhancement strategy can impact your business and reduce your losses. Start maximizing your store’s potential now.